If it is approved, claimants will have the opportunity to divide $125 million. But the money will go to more than just the 20,000 retirees in the Alameda system, other retirement funds will draw from the same pool.
The settlement is the only one being offered from any of the major banks involved in a lawsuit over alleged securities fraud. Wells Fargo’s settlement offer is neither an admission of wrongdoing nor is it a denial. The settlement is being offered, according to bank spokesman, as a way to avoid the distraction and cost of litigations.
From the Oakland Tribune:
Alameda County pension fund investors burned by the mortgage investment meltdown may see a bit of their money returned to them.
On Thursday, a federal judge in San Jose _will decide whether to approve a settlement offered by Wells Fargo to the Alameda County Employees’ Retirement Association, which is a lead plaintiff in a securities fraud class action.
Wells Fargo and numerous other banking institutions are named. Wells Fargo is the only one so far to offer a settlement.
Read the full article here.